As the banking sector recapitalisation intensifies, bank directors have been increasing their stakes in their companies. An analysis of directors' dealings with the Nigerian Exchange Limited from the end of May to June shows that bank chiefs acquired about 1.86 billion shares worth around N39.32 billion.
KEY DETAILS:
- Femi Otedola's Acquisitions: Chairman of FBN Holdings, Femi Otedola, acquired shares worth about N36.35 billion, directly and indirectly through Calvados Global Services, making him the largest shareholder in the banking group.
- Zenith Bank's Staff Fund: The Zenith Staff Provident Fund bought approximately 45.32 million units of Zenith Bank’s shares worth about N1.58 billion in June.
- Sterling Bank Directors: Sterling Financial Holding Company directors acquired shares worth N327.79 million in June. Notable purchases include:
- Tunde Adeola (Executive Director): 35 million shares valued at N148.82 million.
- Ukachukwu Obinna (Divisional Head): 5 million shares.
- Group Company Secretary and other executives: 37.81 million shares valued at N156.92 million.
- Access Holdings: Chizoba Ufoeze bought 1.5 million shares at N19.25 per unit.
- Jaiz Bank: CEO Haruna Musa acquired 10 million shares at N2.25 per unit, worth N22.50 million.
REGULATORY AND MARKET CONTEXT:
- CBN's Recapitalisation Plans: Banks have begun submitting their recapitalisation plans to the Central Bank of Nigeria.
- Fidelity Bank's Initiative: Fidelity Bank launched a N127 billion rights issue and public offer.
- NGX Banking Index: The NGX Banking Index declined by 7.47% in June, reflecting investor caution since the recapitalisation announcement in March.
- Rights Issues: SEC Executive Commissioner Bola Ajomale and NGX’s Acting CEO Jude Chiemeka highlighted the importance of rights issues for capital raising in the recapitalisation exercise.
This activity reflects the banking sector's ongoing efforts to strengthen financial bases amid regulatory changes.
KEY DETAILS:
- Femi Otedola's Acquisitions: Chairman of FBN Holdings, Femi Otedola, acquired shares worth about N36.35 billion, directly and indirectly through Calvados Global Services, making him the largest shareholder in the banking group.
- Zenith Bank's Staff Fund: The Zenith Staff Provident Fund bought approximately 45.32 million units of Zenith Bank’s shares worth about N1.58 billion in June.
- Sterling Bank Directors: Sterling Financial Holding Company directors acquired shares worth N327.79 million in June. Notable purchases include:
- Tunde Adeola (Executive Director): 35 million shares valued at N148.82 million.
- Ukachukwu Obinna (Divisional Head): 5 million shares.
- Group Company Secretary and other executives: 37.81 million shares valued at N156.92 million.
- Access Holdings: Chizoba Ufoeze bought 1.5 million shares at N19.25 per unit.
- Jaiz Bank: CEO Haruna Musa acquired 10 million shares at N2.25 per unit, worth N22.50 million.
REGULATORY AND MARKET CONTEXT:
- CBN's Recapitalisation Plans: Banks have begun submitting their recapitalisation plans to the Central Bank of Nigeria.
- Fidelity Bank's Initiative: Fidelity Bank launched a N127 billion rights issue and public offer.
- NGX Banking Index: The NGX Banking Index declined by 7.47% in June, reflecting investor caution since the recapitalisation announcement in March.
- Rights Issues: SEC Executive Commissioner Bola Ajomale and NGX’s Acting CEO Jude Chiemeka highlighted the importance of rights issues for capital raising in the recapitalisation exercise.
This activity reflects the banking sector's ongoing efforts to strengthen financial bases amid regulatory changes.